Global markets got hit on the morning open today as fears of the spread of the coronavirus make an impact. Energy and emerging markets around the world got hit by selling before the US stock market opened in the morning. But when it comes to the S&P 500 the stocks inside of it down the most today are casinos stocks and vacation travel stocks such as Royal Caribbean Cruises (NYSE: RCL).
RCL is down 7% this morning. It is hardly the only cruise line stock down today. As you can see Norwegian Cruise Line Holdings (NYSE: NCLH) is down over 3% today too. These are ugly looking price charts at the moment.
Is it time to buy these stocks? That depends on two things. First you have to decide whether or not you think this virus fear is overblown or not. Personally I think it will pass in a few weeks and I don’t see how it will stop people from going on vacation cruises once it does.
But, secondly you have to also figure out when selling in the markets actually is done. We probably are not yet at the point where the stock market is just going to turn around and go straight back up. That’s a subject for another post, but today watch the price of gold and understand what is really moving it now.
-Mike
